Home Most Popular Investing The Rise of Cardinal Health: A Beacon Amidst Financial Turbulence

The Rise of Cardinal Health: A Beacon Amidst Financial Turbulence

0
The Rise of Cardinal Health: A Beacon Amidst Financial Turbulence

Strength in Numbers

Cardinal Health (CAH), a leading pharmaceutical distributor, has garnered attention from analysts with its impressive earnings outlook, securing a Zacks Rank #1 (Strong Buy) status.

In the volatile arena of financial markets, Cardinal Health stands tall within the Zacks Medical – Dental Supplies industry, positioned in the top 30% of Zacks industries – a feat worthy of admiration.

A Stellar Performance

Over the past year, CAH has displayed remarkable resilience, boasting a robust +54% growth trajectory that far surpasses the S&P 500. The company’s quarterly results have consistently exceeded expectations, with a remarkable 15% upsurge in EPS performance across its last four reports.

Impressively, CAH recently revealed a 17% earnings beat in its latest release, coupled with a sales surge that outstripped estimates by 1.1%. These figures highlight growth rates of 38% and 11.6%, respectively, shedding light on the company’s commendable financial health.

Steady Growth and Profitability

Cardinal Health’s unwavering commitment to operational excellence has proven fruitful, propelling increased profitability across its business segments. The company’s consistent sales growth trajectory over the years is a testament to its steadfast dedication to success.

Notably, investors can also benefit from a modest annual dividend yield of 1.8%, underscoring the company’s inclusion in the esteemed Dividend Aristocrats group – a league defined by its unwavering devotion to shareholder value.

A Bright Outlook

Looking ahead, CAH presents an optimistic growth profile indicative of a non-tech company. Consensus estimates for the current year project a +25% surge in earnings alongside an +11% increase in sales. Furthermore, expectations for FY25 suggest an additional +10% in earnings growth, coupled with a +9% sales boost.

With a Style Score of ‘B’ for Growth, Cardinal Health is well-poised to continue its upward trajectory in the market, showcasing resilience and potential for future expansion.

The Winning Streak

Investors seeking a winning formula need not look further than the Zacks Rank, a powerful tool that differentiates standout performers in the market. With the prestigious Zacks Rank #1 (Strong Buy) designation, Cardinal Health shines as a beacon of promise among its peers.

For investors looking to ride the wave of success, Cardinal Health (CAH) emerges as a compelling choice, marked by its Zacks Rank #1 (Strong Buy) distinction – a testament to its unwavering potential in the market.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cardinal Health, Inc. (CAH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.